(COLUMBUS, Ohio)—Ohio Attorney General Mike DeWine today announced that a $153 million settlement has been reached in a class action shareholder lawsuit with Fannie Mae and accounting firm KPMG. The settlement must be approved by the United States District Court for the District of Columbia.
"I am pleased to see this litigation finally resolved on behalf of the Ohio pension funds and other members of this very large class," said Attorney General DeWine. "The settlement brings closure to this matter and recovery for our Ohio pension funds and class members."
The settlement would end litigation begun in 2004 with a complaint alleging that Fannie Mae, KPMG, and others were involved in issuing false and misleading financial reports in violation of federal securities laws. The Ohio Public Employees Retirement System (OPERS) and State Teachers Retirement System of Ohio (STRS) were class members and lead plaintiffs of the lawsuit. The class of plaintiffs generally encompasses all purchasers of Fannie Mae common stock and call options, and all sellers of Fannie Mae put options, for the period of April 17, 2001 through December 22, 2004, who suffered damages. Because the litigation was a class action lawsuit, OPERS and STRS will receive a portion of the $153 million settlement.
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